Golar LNG Reports Lower Q1 Revenue (Bermuda)

On the basis that the results of Golar LNG Partners are no longer consolidated, Golar LNG reported first quarter 2013 operating income of $75.9 million (including a $65.2 million gain on sale of the Maria) and net income of $85.6 million.

Highlights 

• Golar Partners completes its third follow-on equity offering raising net proceeds of $130 million.

• Golar sells its interests in the company that owns and operates the LNG carrier Golar Maria to Golar Partners for $215 million.

• Golar Spirit completes its first post FSRU retrofit drydock.

• Golar chosen as preferred bidder for Jordan FSRU. Time Charter Party discussions progressing well.

• Board declares increased dividend of $0.45 for the quarter.

Financial Review

Net revenue for the first quarter of 2013 is lower at $105.5 million against $107.5 million for the fourth quarter 2012. This primarily reflects offhire for the Golar Spirit which continued its scheduled drydocking until February 26, 2013. Mitigating this, the Golar Maria, which spent much of the fourth quarter idling on commercial waiting time, was on hire throughout the first quarter.

Collectively this resulted in an improved first quarter Time Charter Equivalent (TCE) of $94,748 per day compared to $91,479 for the fourth quarter. First quarter operating costs of $21.6 million, which include $1.4 million in respect of costs attributable to the required build up of crewing resources in advance of newbuild deliveries, are lower than the previous quarters costs at $23.8 million which included $3.2 million for this same category of costs. The Company expects that a further $4.5 million will be incurred during the year to build up newbuilding crewing resources. Underlying operating costs for the first quarter at $20.1 million are also lower than the prior quarter at $20.6 million. Administration expenses at $5.6 million were lower than the $6.8 million incurred in the fourth quarter.

Net financial expenses at $9.1 million are lower due to a higher deemed earned interest credit this quarter offset by a full quarter’s interest incurred on the NR Satu loan and Golar Partners’ high yield bond. Other financial items at $1.9 million mainly consist of non-cash interest rate swap and foreign currency retranslation movements.

[mappress]
LNG World News Staff, July 30, 2013